13 October 2017

Is Credit Repair Legal

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Is Credit Repair Legal

After working in the real estate, mortgage, and credit industries for the last nine years, it amazes me that I still get this question from hundreds of people every single year. Even in 2010, when over 70% of Americans today have problems on their credit report, it's amazing that people continue to ask this question.

In my book, "Break the Shackles of Bad Credit: 133 Strategies to Fix Your Credit in 2010," I discussed this topic in detail, but let me get straight to the point and begin this article by answering a popular question that still circulates around the country when it comes to credit repair.

Is credit repair legal?

Yes it is legal. Absolutely! No doubt about it. Credit repair is 100% totally legal.

Even though credit repair is totally legal; it's the scams and shady business practices that have gone on for years by so-called credit repair companies that are illegal.

Credit repair and maintaining good credit is such an important part of our lives, the United States government has passed several laws designed to inform you and protect you from the illegal tactics being practiced by many of these companies. The government has passed laws designed to protect consumers from the illegal people who scheme off people with credit problems and make a bad name for the entire industry.

Rather than outlaw credit repair as a whole, government officials instead have chosen to regulate the industry, especially since credit repair is such a vital and needed service to millions of people every year.

The Federal Trade Commission (FTC) is the federal agency that governs credit repair companies. One of its jobs is to enforce the laws associated with unfair business practices.

The FTC's concerns regarding credit repair agencies address the unethical individuals who have taken advantage of the rising demand of credit restoration by posing as credit repair companies on the Internet or via telemarketing, making promises they either couldn't keep or never intended to keep, and/or charging fees up-front and then vanishing after providing minimal and inadequate services - if any services at all.

As citizens in this country, we all have legal rights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as several other applicable Federal statutes. Don't take my word for it. Feel free to Google any of these laws and what you'll discover is that credit repair is totally legal, when you work with a reputable, ethical organization that's providing the service. The laws clearly outline what's allowed and what's illegal when it comes to credit repair.

In today's society, maintaining good credit is more important now than ever before. Just about every company out there wants to run your credit or look at your credit scores before deciding if they want to do business with you. Even more and more employers are starting to run credit as a standard procedure for new hires.

People laugh when I tell them this, but in today's economy, as more companies become increasingly strict with tighter credit standards, keeping your credit together is almost as important as food and oxygen to your daily lifestyle.

Although some companies would like to have you think otherwise, there is absolutely nothing illegal about disputing questionable items on your credit report, or attempting to improve your current credit situation. In fact, it is your explicit right by law to do so.
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